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Federal Register / Vol. 86, No. 19 / Monday, February 1, 2021 / Notices
2021 is 180 days from that date, and April 1, 2021 is 240 days from that date.
The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change. Accordingly, the Commission, pursuant to Section 19b2 of the Exchange Act,11
designates April 1, 2021 as the date by which the Commission shall either approve or disapprove the proposed rule change File No. SRCboeBYX
2020021.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12
J. Matthew DeLesDernier, Assistant Secretary.
FR Doc. 202102006 Filed 12921; 8:45 am BILLING CODE 801101P

Release No. 3490988; File No. SR
NYSEArca202104

Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Schedule of Fees and Charges To Establish Annual Fees for Exchange Traded Products January 26, 2021.

Pursuant to Section 19b1 1 of the Securities Exchange Act of 1934 the Act 2 and Rule 19b4 thereunder,3
notice is hereby given that, on January 12, 2021, NYSE Arca, Inc. NYSE
Arca or the Exchange filed with the Securities and Exchange Commission the Commission the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
I. Self-Regulatory Organizations Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend its Schedule of Fees and Charges to establish annual fees for Exchange Traded Products that have a maturity date and for products that are based on an expected return over a specific outcome period. The Exchange proposes 12 17

CFR 200.303a31.
U.S.C. 78sb1.
2 15 U.S.C. 78a.
3 17 CFR 240.19b4.
1 15

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II. Self-Regulatory Organizations Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below.
The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements.
A. Self-Regulatory Organizations Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change
SECURITIES AND EXCHANGE
COMMISSION

11 Id.

to implement the fee changes effective January 12, 2021.4 The proposed rule change is available on the Exchanges website at www.nyse.com, at the principal office of the Exchange, and at the Commissions Public Reference Room.

1. Purpose The Exchange proposes to amend its Schedule of Fees and Charges to establish annual fees for Exchange Traded Products ETPs 5 that have a maturity date and ETPs that are based on an expected return over a specific outcome period. As proposed, these types of ETPs would be eligible for the current annual fees for products that track an index.
The proposed change responds to the current extremely competitive environment for ETPs listings in which issuers can readily favor competing venues or transfer their listings if they deem fee levels at a particular venue to be excessive, or discount opportunities available at other venues to be more favorable. The Exchanges current annual fees for ETPs is based on the number of shares outstanding per issuer and provide incentives for issuers to list multiple series of certain securities on the Exchange. In response to the competitive environment for listings, the Exchange adopted a competitive pricing structure that combines higher minimum annual fees for certain securities with discounts for issuers that 4 The Exchange originally filed to amend the Schedule of Fees and Charges on December 23, 2020 SRNYSEArca2020117. SRNYSEArca 2020117 was withdrawn and replaced by SR
NYSEArca2020118. SRNYSEArca2020117
was subsequently withdrawn and replaced by this filing.
5 Exchange Traded Products is defined in footnote 3 of the current Schedule of Fees and Charges.

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list multiple ETPs. The proposed change is designed to offer annual listing fees for ETPs that have a maturity date and ETPs that provide an expected return over a specific outcome period based on the annual fees for ETPs that track an index.
The Exchange proposes to implement the fee changes effective January 12, 2021.
Proposed Rule Change Annual fees are assessed each January in the first full calendar year following the year of listing. The aggregate total shares outstanding is calculated based on the total shares outstanding as reported by the Fund issuer or Fund family in its most recent periodic filing with the Commission or other publicly available information. Annual fees apply regardless of whether any of these Funds are listed elsewhere.
The Exchange proposes to offer annual listing fees for two types of ETPs: 1 ETPs that have a specific maturity date, such as a fixed income ETP that primarily holds a diversified portfolio of fixed income bonds that provides regular interest payments and distributes a final payout in its stated maturity year; and 2 ETPs that provide an expected return over a specific outcome period, which are designed to provide a particular set of returns over a specific period based on the performance of an underlying instrument during the ETPs outcome period. Such ETPs include a buffer strategy that seeks to provide investment returns that match the gains of a particular indexs up to a maximum annual return, or cap level, while guarding against declines in the same underlying indexs, a buffer level, over a particular time period. Currently, both types of ETPs are eligible for the annual fees set forth in section 6.b. of the Schedule of Fees and Charges, which are applicable to Managed Fund Shares, Managed Trust Securities, Active Proxy Portfolio Shares, Managed Portfolio Shares and Exchange-Traded Fund Shares listed under Rule 5.2
Ej8 that do not track an index.
Generally, the products eligible for fees under section 6.b. of the Schedule of Fees and Charges entail more active issuer management and therefore incur higher Exchange costs, including costs related to issuer services, listing administration, product development and regulatory oversight.
The Exchange proposes that ETPs that have a maturity date and ETPs that provide an expected return over a specific outcome period would be eligible for the lower fees set forth in section 6.a. of the Schedule of Fees and
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